Google’s quarterly earnings soar past analysts’ forecasts

Google Inc. ushered in new CEO Larry Page with second-quarter earnings that were far better than analysts expected.

The results released Thursday reassured investors who had been fretting about whether Google would still thrive under Page’s leadership. The Google co-founder replaced Eric Schmidt, the CEO of the previous decade, at the start of the quarter.

Wall Street wasted little time signaling its exuberance with Page’s performance. Google shares increased $54.51, or more than 10 percent, to $583.45 in extended trading after finishing the regular session at $528.94.

Google Inc. earned $2.5 billion, or $7.68 per share, in the April-June period. That’s a 36 percent increase from a year ago.

Petro giant ConocoPhillips splitting into two companies

ConocoPhillips said Thursday it will split into two companies: one that produces oil and another that refines it into gasoline and other fuels.

The decision was cheered by Wall Street analysts and investors, who see advantages to running smaller, more focused operations. Shares gained $1.21 to close at $75.61.

The move continues an about-face for a company that spent billions of dollars during the past several years growing into America’s third-largest oil company.

After snapping up Burlington Resources for $35 billion and making multibillion-dollar investments in Russia’s Lukoil and the Rockies Express gas pipeline, Conoco was deep in debt. The company has been trying to shed assets since last year.

Standard & Poor’s warns of U.S. credit downgrade

The credit rating agency Standard & Poor’s is warning that there is a 50 percent chance it will downgrade the U.S. government’s credit rating within three months because of the congressional impasse over approving an increase in the debt ceiling.

In a statement, the agency said it is placing the United States on a credit watch with at least a one-in-two likelihood that it will lower the country’s debt rating within the next 90 days.

The S&P action marked the second credit warning in the past two days. On Wednesday, Moody’s Investors Service said it is reviewing the government’s triple-A bond rating.